What options are available for determining the site of arbitration or mediation for a Caring Transitions franchise in Washington?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation.
In addition, if litigation is not precluded by the franchise agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, if a franchisee purchases a franchise in Washington and becomes involved in arbitration or mediation, the location of these proceedings can be determined in one of three ways. First, the arbitration or mediation can take place within Washington state. Second, the location can be a place that is mutually agreed upon by both parties, Caring Transitions and the franchisee, at the time the arbitration or mediation is initiated. Finally, the arbitrator or mediator themselves can determine the location at the time of the proceedings.
Additionally, the FDD states that if litigation is not precluded by the franchise agreement, a franchisee has the option to initiate a legal action or proceeding in Washington. This action must arise from or be connected to the sale of the franchise or a violation of the Washington Franchise Investment Protection Act.
These stipulations protect the franchisee by ensuring that the location of arbitration, mediation, or litigation is fair and convenient. It prevents Caring Transitions from forcing franchisees into unfavorable locations, especially given the power imbalance between franchisor and franchisee. Franchisees should carefully consider these provisions and consult with legal counsel to understand their rights under Washington law.